REGISTERED NUMBER: SC426476 (Scotland)

Unaudited Financial Statements for the Year Ended 31 December 2025

for

MORRISON GLASGOW DISTILLERS LIMITED

Page

Company Information

1

Managing Director's Report

2

Balance Sheet

3

Notes to the Financial Statements

5

Chartered Accountants' Report

11

DIRECTORS:

Mr S A Morrison

Mr D Ross

Mr M Acks

Ms K C Morrison

REGISTERED OFFICE:

100 Stobcross Road

Glasgow

G3 8QQ

REGISTERED NUMBER:

SC426476 (Scotland)

ACCOUNTANTS:

McAllisters

Paxton House

11 Woodside Crescent

Charing Cross

Glasgow

G3 7UL

The financial year has been another year of significant activity for the business, with a continued focus on strengthening the underlying business and positioning the company for sustainable, long-term growth, despite the ongoing pressures being experienced across the industry.

2025 saw a reduction in turnover compared with 2024, primarily due to an exceptional stock swap in 2024, which resulted in an unusually high turnover for that year. Financial performance was also impacted by increased production costs, higher borrowing costs and continued softness across all export markets.

Maturing inventory continued to increase in value, further strengthening the balance sheet.

During the year, the business continued to make progress across its key operational areas, particularly production. 2025 saw our highest level of production to date and the successful completion of the distillery production expansion. The distillery is now capable of producing approximately 850,000 LPA per year, an increase from 550,000 LPA.

We remain focused on improving operational efficiency, developing our customer base and maintaining the quality and integrity of the brand.

The Scotch whisky market remained challenging during the year, following the exceptional growth experienced in the post-pandemic period. While near-term market conditions remain uncertain, the long-term fundamentals of Scotch whisky remain attractive, supported by its global reputation, premium positioning and growing international demand.

The Board has continued to focus on strengthening the balance sheet and ensuring that the business is appropriately positioned for the next phase of growth.

While we remain mindful of the continuing challenges within the wider market, management and the Board remain confident in the long-term prospects of the business.

Our priorities for the coming year will be to distil at appropriate levels relative to demand, maintain tight control of costs and cash, and continue to build the underlying value of the business.

I would like to thank the Board, our employees, shareholders and business partners for their continued support and contribution throughout the year.

.................................................... Mr S A Morrison - Director

Date: 11 August 2026

FIXED ASSETS

Intangible assets

4

29,028

30,556

Tangible assets

5

9,670,775

9,204,236

9,699,803

9,234,792

CURRENT ASSETS

Stocks

8,160,802

7,012,742

Debtors

6

207,014

362,566

Cash at bank and in hand

70,412

86,240

8,438,228

7,461,548

CREDITORS

Amounts falling due within one year

7

1,200,341

738,490

NET CURRENT ASSETS

7,237,887

6,723,058

TOTAL ASSETS LESS CURRENT LIABILITIES

16,937,690

15,957,850

CREDITORS

Amounts falling due after more than one year

8

9,000,000

7,256,730

NET ASSETS

7,937,690

8,701,120

CAPITAL AND RESERVES

Called up share capital

10

9,248,025

9,248,025

Share premium

3,677,856

3,677,856

Retained earnings

(4,988,191

)

(4,224,761

)

SHAREHOLDERS' FUNDS

7,937,690

8,701,120

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 11 August 2026 and were signed on its behalf by:

Mr S A Morrison - Director

1.	STATUTORY INFORMATION

Morrison Glasgow Distillers Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The preparation of the financial statements, in compliance with FRS 102, requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The directors are of the opinion there are no critical accounting estimates. The directors have exercised their judgement in relation to the allocation of attributable labour costs to bulk spirit and to maturing product and this has been done in order to ensure that a true and fair view is presented.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discount and value added taxes. Turnover includes revenue earned from the sale of goods and rendering of services in connection with the distillery and the visitor centre and shop.

Timing of revenue recognition

Sales are recognised depending on the individual customer terms at the time of dispatch, delivery or when the risk of loss transfers.

Revenue from the sale of cased goods is recognised when the goods are shipped. Revenue from the sale of bulk spirit is recognised when the goods are dispatched or when the ownership of the stock is transferred to the purchaser.

Revenue from the visitor centre, which can comprise the sale of goods or the rendering of services in the form of visitor tours, tastings and hosting events, are recognised at the point of sale or the point of the services being provided in accordance with the stage of completion of the contract.

Intangible fixed assets

The intangible fixed assets held in the balance sheet relate to patents purchased by the company. These have been capitalised as it is expected future benefits will flow to the entity over the assets useful economic life.The intangible assets are being amortised at the following rates.

Patents & licenses - 5% on reducing balance

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged to profit or loss over the estimated useful economic lives, as follows:

Fixtures & Fittings - 5% reducing balance

Computer equipment - 25% reducing balance

Website development - 25% reducing balance

Plant and machinery - casks - 5% straight line basis

Plant and machinery - remainder - 5% reducing balance basis.

The company purchased land during the year ended 30 June 2015 for £1,081,705 and this is included within freehold property in fixed assets. Land is considered to have an indefinite life and accordingly is not depreciated. The remaining freehold property is not depreciated on the basis that the property is well maintained and is increasing in value.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use.

Any impairment loss is recognised immediately as an expense within profit or loss

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs incurred in bringing each product to its present location and condition as follows;

Raw materials - Purchase cost on an average cost basis,.

Work in Progress and finished goods - cost of direct materials and, where applicable, direct labour costs and attributable overheads based on a normal level of activity.

At each reporting date an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

Trade and other debtors/creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate of measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the assets carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

A provision is recognised when the company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2024 - 30 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2025

and 31 December 2025

51,374

AMORTISATION

At 1 January 2025

20,818

Amortisation for year

1,528

At 31 December 2025

22,346

NET BOOK VALUE

At 31 December 2025

29,028

At 31 December 2024

30,556

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2025

7,035,320

3,814,941

857,558

Additions

-

630,307

39,761

At 31 December 2025

7,035,320

4,445,248

897,319

DEPRECIATION

At 1 January 2025

1,107,687

1,091,576

309,051

Charge for year

-

172,931

29,414

At 31 December 2025

1,107,687

1,264,507

338,465

NET BOOK VALUE

At 31 December 2025

5,927,633

3,180,741

558,854

At 31 December 2024

5,927,633

2,723,365

548,507

Website

Computer

development

equipment

Totals

£

£

£

COST

At 1 January 2025

32,152

19,842

11,759,813

Additions

-

-

670,068

At 31 December 2025

32,152

19,842

12,429,881

DEPRECIATION

At 1 January 2025

29,239

18,024

2,555,577

Charge for year

729

455

203,529

At 31 December 2025

29,968

18,479

2,759,106

NET BOOK VALUE

At 31 December 2025

2,184

1,363

9,670,775

At 31 December 2024

2,913

1,818

9,204,236

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

£

Trade debtors

35,489

211,852

Other debtors

6,192

7,726

S455 debtor

2,296

2,296

VAT

40,222

-

Prepayments

122,815

140,692

207,014

362,566

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

£

Bank loans and overdrafts

56,730

111,111

Trade creditors

625,291

412,952

Social security and other taxes

16,754

15,578

VAT

-

5,036

Other creditors

278,425

30,801

Deferred income

70,541

56,459

Accrued expenses

152,600

106,553

1,200,341

738,490

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.25

31.12.24

£

£

Bank loans - 1-2 years

-

56,730

Bank loans - 2-5 years

9,000,000

7,200,000

9,000,000

7,256,730

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.25

31.12.24

£

£

Bank loans

9,056,730

7,367,841

The Virgin Money credit facility is secured by a floating charge over the assets of the company.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.25

31.12.24

value:

£

£

8,419,394

Ordinary A

£0.50

4,209,697

4,209,697

10,076,656

Ordinary B

£0.50

5,038,328

5,038,328

9,248,025

9,248,025

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Morrison Glasgow Distillers Limited for the year ended 31 December 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance. Except that we are not independent by virtue of the fact that one of our partners is also a director of this company.

This report is made solely to the Board of Directors of Morrison Glasgow Distillers Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Morrison Glasgow Distillers Limited and state those matters that we have agreed to state to the Board of Directors of Morrison Glasgow Distiller Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Morrison Glasgow Distillers Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Morrison Glasgow Distillers Limited. You consider that Morrison Glasgow Distillers Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Morrison Glasgow Distillers Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

McAllisters

Paxton House

11 Woodside Crescent

Charing Cross

Glasgow

G3 7UL

11 August 2026